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US copper futures rise as tariff fears loom

U.S. Copper Futures soared by nearly 6% Monday, increasing their premium over London Prices amid growing speculation about new import tariffs after President Donald Trump’s latest aluminum trade measures.

Trump announced on Friday that he would increase the tariffs on steel and aluminum imports to 50%, up from 25%.

U.S. Comex Copper Futures rose 5.7% to $4.9175 a pound. This is the highest price since April 3. The benchmark three-month copper price on the London Metal Exchange rose by 1.1% at $9,597.50 a metric ton as of 0944 GMT.

The COMEX premium over the LME, a global benchmark price, has widened from $759 per ton to $1,231 a ton on Friday.

Tom Price, Panmure Liberum analyst, said: "Although the word copper was not mentioned in Trump's announcements last week the markets have clearly priced in the possibility of tariffs after the February investigation. This shows the strong demand for the metal from investors."

In February, Trump launched a probe to determine whether new tariffs could be imposed on imports of copper, a critical metal for electric vehicles, military equipment, and semiconductors.

LME aluminium remained steady at $2.443.50 per ton after having touched its lowest level in May at $2.425.50. The U.S. Midwest Aluminium Premium jumped 54% since Friday, to $0.58/lb ($1,279 per ton).

Goldman Sachs said in a report that the U.S. Midwest Aluminium Premium would increase to $0.68-0.70/lb if higher metals tariffs are implemented and remain in place.

Lead increased by 0.9% to $1975, Zinc gained 1.7% at $2,663.50. Tin rose by 0.8% to $30,600, and Nickel was up 0.9%, to $15,365.

The softer dollar made metals more accessible to holders of other currencies.

Neil Welsh, Britannia Global Markets' head of metals, explained that the Dragon Boat Festival in China was responsible for the low Asian participation on Monday. Reporting by Ashitha Shivprasad from Bengaluru, and Polina Deitt in London. Editing by Kirby Donovan.

(source: Reuters)